1) There exists a universally agreed definition of Corporate Governance:
T
F
2) The two primary competing views of corporate governance are:
Shareholder vs Agent
Principle vs Agent
Shareholder vs Stakeholder
3) European companies tend to adopt the stakeholder view of governance, while Anglo-American companies tend to focus on the shareholder view
T
F
4) Shareholders appoint the management board
T
F
5) Corporate governance is best understood as a set of fiduciary and managerial responsibilities
T
F
6) Shareholders elect ______________, who appoint ______________, to run corporations
Directors, Mangers
Managers, Directors
Agents, Principles
Chairman, CEOâs
7) The principle/agent problem involves aligning management interests with those of the shareholders
T
F
8) Shareholders get their return on investment from the residual (profits) only after all other stakeholders have been paid:
T
F
9) Large shareholders (those owning more shares) have more influence over a company than smaller ones
T
F
10) The term âinstitutional investorâ includes:
Banks, trust funds, pension funds
Employee representatives, government representatives, unions
Company management and employees that own shares
11) According to the text, auditors, bankers, credit rating agencies and analysts are often referred to as:
Consultants
Gatekeepers
Advisors
None of the above
12) Agency theory:
Explains the relationship between management and employees
Explains the relationship between principles and agents
Explains how sports stars make huge amounts of money
13) The âGerman modelâ of governance in large companies includes:
A âtwo-tierâ governance/board structure
A âsingle-tierâ governance/board structure
A combined board consisting of management, shareholder representatives and other stakeholders
None of the above
14) In a two tiered board structure:
The management board appoints the supervisory board
The supervisory board appoints the management board
The CEO reports to shareholders
The Chairperson reports to the CEO
15) Japanese board structures are unique in that:
The boards consist of a large number of âinsidersâ such as management
Banks often have representatives sit on the boards of their customers
Both A and B
1) There exists a universally agreed definition of Corporate Governance:
T
F
2) The two primary competing views of corporate governance are:
Shareholder vs Agent
Principle vs Agent
Shareholder vs Stakeholder
3) European companies tend to adopt the stakeholder view of governance, while Anglo-American companies tend to focus on the shareholder view
T
F
4) Shareholders appoint the management board
T
F
5) Corporate governance is best understood as a set of fiduciary and managerial responsibilities
T
F
6) Shareholders elect ______________, who appoint ______________, to run corporations
Directors, Mangers
Managers, Directors
Agents, Principles
Chairman, CEOâs
7) The principle/agent problem involves aligning management interests with those of the shareholders
T
F
8) Shareholders get their return on investment from the residual (profits) only after all other stakeholders have been paid:
T
F
9) Large shareholders (those owning more shares) have more influence over a company than smaller ones
T
F
10) The term âinstitutional investorâ includes:
Banks, trust funds, pension funds
Employee representatives, government representatives, unions
Company management and employees that own shares
11) According to the text, auditors, bankers, credit rating agencies and analysts are often referred to as:
Consultants
Gatekeepers
Advisors
None of the above
12) Agency theory:
Explains the relationship between management and employees
Explains the relationship between principles and agents
Explains how sports stars make huge amounts of money
13) The âGerman modelâ of governance in large companies includes:
A âtwo-tierâ governance/board structure
A âsingle-tierâ governance/board structure
A combined board consisting of management, shareholder representatives and other stakeholders
None of the above
14) In a two tiered board structure:
The management board appoints the supervisory board
The supervisory board appoints the management board
The CEO reports to shareholders
The Chairperson reports to the CEO
15) Japanese board structures are unique in that:
The boards consist of a large number of âinsidersâ such as management
Banks often have representatives sit on the boards of their customers
Both A and B
